Producer Behaviour and Supply-Cost (CBSE Class-12 Economics): Questions 18 - 23 of 47

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Question number: 18

» Producer Behaviour and Supply » Cost

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Given below is the cost schedule of a firm. Its average fixed cost is Rs. 20 when it produces 3 units.

Calculate its marginal cost and average total cost

Calculate its marginal cost and average total cost in detail

Output (units)

1

2

3

Average variable cost ( Rs. )

30

28

32

Calculate its marginal cost and average total cost at each given level of output.

Explanation

Calculate its marginal cost and average total cost

Calculate its marginal cost and average total cost in detail

Output

(units)

AVC

AFC

TFC (AFC × Q)

TVC (AVC × Q)

ATC (AVC

+AFC)

TC (TFC + TVC)

1

30

60 (60/1)

60 (60 × 1)

30

90

90

2

28… (125 more words) …

Question number: 19

» Producer Behaviour and Supply » Cost

Appeared in Year: 2012

Essay Question▾

Describe in Detail

A producer invests his own savings in starting of a business and employs a manager to look after it. Identify implicit and explicit costs from this information. Explain.

Explanation

Explicit Costs: paid directly in money - money costs. A firm incurs explicit costs when it pays for a factor of production at the same time it uses it.

  • Explicit Cost = payments by a firm to purchase the service of productive resources (wages, interest, rent, capital)
  • Implicit Costs: measured… (120 more words) …

Question number: 20

» Producer Behaviour and Supply » Cost

Appeared in Year: 2012

Short Answer Question▾

Write in Short

What is the behavior of average fixed cost as output increase?

Question number: 21

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Why does the difference between Average Total Cost and Average Variable Cost decrease as the output is increased? Can these two be equal at some level of output? Explain.

Explanation

difference between Average Total Cost and Average Variable Cost

Difference Between Average Total Cost and Average Variable Cost

In this figure show difference between Average Total Cost and Average Variable Cost

In this diagram output level increase and difference between Average Total Cost and Average Variable Cost goes on falling.

Average Total Cost (ATC) minus Average Variable Cost (AVC)… (48 more words) …

Question number: 22

» Producer Behaviour and Supply » Cost

Short Answer Question▾

Write in Short

Calculate Total Variable Cost and Marginal Cost from the following cost schedule of a firm whose Total Fixed Costs are Rs. 12

Calculate Total Variable Cost and Marginal Cost

Calculate Total Variable Cost and Marginal Cost in details.

Output

Total Cost

1

20

2

26

3

31

4

38

Question number: 23

» Producer Behaviour and Supply » Cost

Essay Question▾

Describe in Detail

Distinguish between fixed cost and variable cost and give one example of each?

Explanation

Distinguish between fixed cost and variable cost

Distinguish between fixed cost and variable cost given below:

Characteristics

Fixed cost

Variable cost

Definition

Fixed costs are costs that do not

vary with the level of production.

Variable costs are the costs that do vary with the level of production.

When change… (147 more words) …

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